Defaulting on Student Loans
For years, student loans have been a sort of rite of passage for college age students. In order to afford a college degree, the government has allowed college students to use student loans to pay for multiple years of college education. While this is seemingly helpful for young adults who do not have the means to pay for college education, it does put them in a precarious situation upon graduating from college – or not graduating. All money that is borrowed, is expected to be paid back in full plus interest. However, with the job market as it is these days, many college graduates are having a difficult time acquiring a job after they graduate. Without a job, they do not have the means to begin paying back their student loans.
When graduates leave college already buried in debt, and when they are unable to secure a job out of college – plus not acquiring the salary they hoped for – they are often unable to escape the reality of debt. However, the other reality that graduates face is the consequence of defaulting on student loans. The government easily gives out money for student loans, yet they are not lenient against borrowers who do not make their student loan payments.
There are serious consequences for defaulting on student loans:
- You get sued by the government and/or private lenders.
- The government can take your federal benefit payments
- The government can garnish a portion of your paycheck
- The government can intercept your tax refunds
As you see, the government holds strong punishments for those who default on their student loans. Understanding this before you apply for or accept a student loan is essential to your future.
If you are already in a bind over defaulting on student loans or the possibility of doing so, please contact Gingold & Gingold, LLC today. The sooner you contact us, the sooner we can help you get the relief you need.